Capella University PM-FPX5334-ASST5_Corrective_Action_and_Monitoring.

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Risk Management Plan Project Name: Lithuanian Construction Project Learner Name: Gaylon Barcom Course Name: PM-FPX5334 Date: November 18, 2019 Table of Contents Section 1 – Introduction to the Plan_... _____________________________________________________________________________3 1.1 Benefits of Risk Management________________________________________________________________________________________3 1.2 Project Goals and Objectives_________________________________________________________________________________________4 1.3 Company Background______________________________________________________________________________________________4 1.4 Risk Identification_________________________________________________________________________________________________5 Section 2 – Risk Scope, Components, and Value_____________________________________________________________________5 2.1 Scope of the Risk Management Plan__________________________________________________________________________________5 2.2 Risk Management Plan Components__________________________________________________________________________________8 2.3 Expected Monetary Value___________________________________________________________________________________________9 2.4 Determine the Risks_______________________________________________________________________________________________11 2.5 Evaluate and Assess the Risks_______________________________________________________________________________________12 2.6 Qualitative and Quantitative Processes_______________________________________________________________________________13 Section 3 – Risk Analysis and Assessment________________________________________________________________________16 3.1 Major and Minor Risks____________________________________________________________________________________________16 3.2 Risk Probability__________________________________________________________________________________________________18 3.3 Risk Matrix Template______________________________________________________________________________________________21 13.4 Risk Data Quality Strategy__________________________________________________________________________________________22 3.5 Risk Reviews_____________________________________________________________________________________________________22 Section 4 – Corrective Action and Monitoring_____________________________________________________________________24 4.1 Risk Tolerance___________________________________________________________________________________________________24 4.2 Risk Mitigation___________________________________________________________________________________________________25 4.3 Corrective Risk Management Strategy________________________________________________________________________________27 4.4 Corrective Action Plan_____________________________________________________________________________________________28 Section 5 – Postmortem Plan___________________________________________________________________________________30 5.1 Results_________________________________________________________________________________________________________30 5.2 Follow Up_______________________________________________________________________________________________________30 Section 6 – References________________________________________________________________________________________31 Pritchard, C. L., PMP, PMI-RMP, EVP. Risk Management. [Capella]. Retrieved from https://capella.vitalsource.com/#/books/9780429798566/_____________________________________________________________31 Templates__________________________________________________________________________________________________33 Risk Matrix Legend Example___________________________________________________________________________________________33 Risk Matrix Example_________________________________________________________________________________________________34 Risk Monitoring and Control Example___________________________________________________________________________________34 2Section 1 – Introduction to the Plan 1.1 Benefits of Risk Management According the Project Management Institute (PMI), Risk is one of the Nine (9) process areas that are considered. Sound Stratagems for Risk Management is paramount for the project manager (PM) to be effective in determining those areas that will be pitfalls to the project as well as those areas that will bring about opportunities and showcase the strength of the organization. By preparing a plan that accounts for the unknown, the project team can build in reactivity to mitigate or ward off these events should the arise. Additionally, this plan will allow the team to maintain separation from these issues if deemed necessary. Meeting the project objectives requires that the project be planned, prepared and evaluated in such a manner that the results align with the strategic goals of the project. Risk management planning examines, identifies and lists risk factors that are both internal and external to the project thus, adding to the success of the project. Provisions within the risk management plan (RMP) identify the plausibility of incident, the potential consequences, and perceived mitigations. Risk events are usually classified as having a Low, Moderate or High impact on the team’s performance within the budget or schedule. These events usually carry the following descriptors: (Pritchard, 2015)  Low probability and low impact equal low risk  High probability and high impact equal high risk  High probability and low impact equal low risk (to the project’s overall success) Moderate risk is usually a mixed group of the above that is something more than Low but does not meet the criteria to be considered High. [Show More]

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